Sharyland’s tax rate remains the same

By Lea Juarez | October 7, 2024 |

The Sharyland ISD Board of Trustees approved a tax rate of $0.9575 per $100 valuation, making it the ninth year in a row the district has lowered or kept the same tax rate.

SISD’s tax rate contains two elements — the maintenance and operations rate (M&O) and interest and sinking rate (I&S). This year, the M&O tax rate is $0.7869, and the I&S rate is $0.1706.

Since 2016, SISD has steadily lowered the tax rate from $1.3755, partly due to the 2019 House Bill 3, which mandates school districts compress their M&O tax rate to increase per-student funding and reduce property taxes throughout the year. In Sharyland, the M&O fund pays for district operations such as salaries, utilities, supplies and contracted services. The I&S fund exclusively pays bond debt payments.

However, this year, the trustees approved a one-year resolution increasing the M&O tax rate by $0.0317 disaster pennies.

Under Texas Tax Code 26.042, a district can adopt a higher M&O tax rate with only board approval if the district incurred property damage in a disaster. In April 2023, Sharyland ISD facilities sustained more than $1 million in damages from a wind storm. Following a disaster declaration from Gov. Greg Abbott and a request for federal assistance, everything was in place for SISD to adopt what is known as disaster pennies.

“There is a maximum M&O tax rate that the state allows. And so because we [were] not at that maximum rate, it allows us to go up to that maximum rate without voter approval. For our district, it equates to $0.0317,” SISD Chief Financial Officer Jaime Ortega explained.

The district’s attorney and financial advisor reviewed the proposal before the board approved the resolution for the disaster pennies.

With SISD able to tap into the disaster pennies, the district generates $1.92 million more for this year only. In June, the board agreed the extra money would go toward employee compensation. The additional revenue allowed for a 3% increase for hourly employees, about a 2.75% increase for teachers and a 2.5% increase for non-teaching professionals.

Sharyland’s 10-year tax rate history is as follows: